Negotiating and AVN

Negotiation: A decision-making process among interdependent parties with different preferences

Common Types of Negotiation

1.      Two-party negotiation (e.g., buyer and seller)

2.      Third party negotiation (e.g., agents and arbitrators)

Elements of Effective Negotiation

Adopting a win-win attitude: Understanding that a mutually beneficial agreement addresses both parties’ interests

Knowing your BATNA (best alternative to a negotiated agreement): Your “bottom line” for accepting or rejecting offers

Identifying the bargaining zone: Negotiation is useless if both parties involved have no common ground on which to maneuver during bargaining.

 The Bargaining Zone for Negotiators

Added Value Negotiating (AVN)

A practical five-step win-win process involving the development of multiple deals. Clarify subjective and objective interests; seek common ground.. Identify options and their marketplace values. Design alternative deal packages that foster a creative agreement. Select a mutually acceptable deal that is feasible for both parties. Perfect the deal by strengthening relationships for future negotiations.